The first-instance verdict in the divorce and property division lawsuit filed by Kwon Hyuk-bin, founder of Smilegate, will be announced on the 9th. With spouse Lee demanding half of the shares held by Founder Kwon, attention is focused on the scale of property division the court may recognize.
According to the game industry on the 7th, the Seoul Family Court's Domestic Affairs Mediation Division No. 3 is scheduled to announce the verdict in the divorce and property division lawsuit between Founder Kwon and Lee at 2 p.m. on the 9th. This comes about four years after Lee filed the lawsuit in November 2022. The court concluded its arguments on July 8.
Lee's side demands half of the shares of Smilegate Holdings held by Founder Kwon as part of property division. Founder Kwon currently holds 100% of the shares in Smilegate Holdings, the group's holding company.
A key issue determining the scale of property division is corporate valuation. During the court's appraisal process, an evaluation using the discounted cash flow method, which converts future earnings into present value, was presented at 8.16 trillion won. Under the inheritance and gift tax law's valuation method, the value stands at approximately 4.9 trillion won.
Simply calculating half of the shares based on the 8.16 trillion won figure yields a spouse's share of 4.08 trillion won. However, this is an amount calculated based on the appraisal and Lee's side's demands, not the property division amount recognized by the court. The actual amount will vary depending on the evaluation method adopted by the court, the assets subject to division, and the spouse's contribution level.
Both sides clash over how much Lee contributed during the company's establishment and growth process. Lee's side asserts that she held 30% of the shares at the time of establishment and served as CEO and registered director, arguing that she contributed to asset formation by assisting in initial fundraising and managing household affairs and child-rearing.
In contrast, Founder Kwon's side refutes this, stating there is no evidence that Lee invested her own funds or worked at the company. They maintain that registered titles must be distinguished from actual management participation. The court will determine Lee's actual role and level of contribution.
Whether the divorce will be granted is also a key issue, as Founder Kwon's side maintains its position against granting the divorce. Before deciding on property division, the court must first determine whether to accept Lee's request for divorce.
This case is also compared to the property division lawsuit between SK Group Chairman Choi Tae-won and Noh So-young, director of Arth Center Nabi. On July 24, the Seoul High Court ruled in a retrial that Choi (Chairman) must pay Director Noh 944 billion won. The approximately 4 trillion won mentioned in Founder Kwon's case exceeds four times this amount.
However, the 944 billion won in the Choi (Chairman) case has not yet been finalized. After Choi (Chairman) filed a further appeal on August 14, the Supreme Court will now make the final judgment. The property division amount in that case changed from 66.5 billion won at first instance, to 1.3808 trillion won at the second instance (later overturned), and then to 944 billion won in the retrial.
The verdict in Founder Kwon's case is a first-instance judgment. Even if property division is recognized, the amount and payment method may change depending on future appeal procedures.
in TECH
